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A sustainable oil palm plantation strives to generate great profits without neglecting its surrounding community and environment. This paper discusses the standard production management at Plantation SOEs based on the concept of sustainable development of oil palm plantations. In improving quality and profits, companies require good faith to prevent fraud. The management of Plantation SOEs avoid an action that causes company losses, be attentive, avoid conflicts of interest, and take preventative actions. This is a normative juridical research showing that fraudulent practices such as the delivering palm oil commodities without official documents, false records, double invoicing, theft, embezzlement, corruption, loss of assets, deterioration of company health and income, and debt can threaten the reputation and cause losses for Plantation SOEs and the country. In conclusion, a sustainable oil palm plantation as a form of standardized production management at Plantation SOEs based on good faith is the main approach to prevent fraud and corporate and state losses. However, Management is not yet committed to implement this approach. To realize this, the good faith must be regulated according to the law, articles of association, and SOP. This will enable violators to be subjected to legal sanctions to protect public interests.

Sustainable oil palm plantations as a form of state-owned enterprise management with good faith standard